What is the refund range that may be granted to a defaulting buyer under the Maceda Law?

What is the refund range that may be granted to a defaulting buyer under the Maceda Law?

• A. 50% to 90% of what has been paid
• B. 0%
• C. 100%
• D. 25% to 75%

Answer: (A)

Under the Maceda Law, when a buyer who has been paying on an installment purchase defaults and the contract is canceled, the buyer is entitled to a partial refund of the payments already made. This protection acknowledges the buyer’s contributions while recognizing the seller’s costs. The amount of refund is not fixed; it ranges from 50% to 90% of the payments the buyer has already made, with the exact percentage increasing the longer the buyer has been paying before the default. The idea is to prevent a total loss of the buyer’s equity while still allowing for the seller’s recovery of carrying costs and the use of the property.

Under the Maceda Law, when a buyer who has been paying on an installment purchase defaults and the contract is canceled, the buyer is entitled to a partial refund of the payments already made. This protection acknowledges the buyer’s contributions while recognizing the seller’s costs. The amount of refund is not fixed; it ranges from 50% to 90% of the payments the buyer has already made, with the exact percentage increasing the longer the buyer has been paying before the default. The idea is to prevent a total loss of the buyer’s equity while still allowing for the seller’s recovery of carrying costs and the use of the property.